Short Sale Closing Tips For Homeowners
Short Sale Closing Tips For Homeowners
Short Sales Are Tough To Close
Why are they so tough? The easy answer is “many factors”.
Things such as:
- Local market conditions – High foreclosure rate and lack of buyers
- Condition of the property – Is it attractive to buyers in the “as is” condition
- Buyer fails to close – Buyers often back out
- Lender delays – Drives away buyers
- Mortgage insurance – Lender may gain more with foreclosure
Many experienced Realtors would pin the #1 reason for short sale failure on the buyer’s failing to close. Most often it’s the result of two things:
- Buyer found another property that closed before short sale approval
- Buyer simply grows frustrated with the long process.
If you need a short sale what can you do?
- Educate Buyers – Explain to the buyer that short sales are difficult to close.
- Set reasonable expectation with the buyer – Make sure the buyers understand there will be long delays. It could take over 4 months before they can move into the home.
- Find a short sale investor – A short sale investor could be the type of knowledgeable buyer a seller needs to avoid foreclosure.
One of the best options for a distressed homeowner is to find a short sale investor who understands the long process and will stay in the transaction until it closes.
Having a committed buyer may mean a lower sales price but is that really important to the distressed seller.
If the real estate investor completes the short sale, it will result in a faster financial recoverery for the distressed homeowner and less credit damage.
One quick tip to find a real estate investor is just to use a search engine like Yahoo or Google and search terms such as Short Sale or Avoid Foreclosure and you may find a good real estate investor such as Short Sale Buyers
For Sellers considering an investor offer they should weigh the benefits of possibly closing the short sale faster vs the risk of finding a retail buyer who will stay in the transaction until final lender approval.
Original article source: http://www.realpropertyinvestingtips.com/uncategorized/short-sale-closing-tips-for-homeowners/
